On October 27, Zhongrong Trust responded to The Paper in response to the news that the lock cylinder of the safe jointly kept with Sunac Real Estate Group was replaced and the 1.14 billion funds of the supervision account were taken away, saying, "Strict representations have been made to Sunac. And report it to the local public security organs as soon as possible.”

　　Recently, market sources said that some investors received the "Second Interim Management Report of the Zhongrong-Fengteng No. 83 Collective Fund Trust Plan" (hereinafter referred to as the "Report") from Zhongrong Trust.

　　The "Report" stated that in September 2022, the trustee found that the lock cylinder of the safe storing the co-managed items such as the Tazihu ​​property seal, license and seal jointly kept by the trustee and Sunac was replaced, and the safe could not be opened.

In addition, about 1.14 billion yuan of funds in the supervision account of the pre-sale funds of Tazihu ​​Real Estate were transferred away.

Among them, 13.43 million yuan was transferred to the account of Wuhan Sunac Foundation Holding Group Co., Ltd., and the remaining about 1.12 billion yuan was transferred to the special account for the Tazihu ​​project established by the Tazihu ​​Sub-district Office of the People's Government of Jiang'an District, Wuhan City.

　　The Paper reporter learned from people close to Zhongrong Trust that the content of the above "Report" is basically true.

　　Zhongrong Trust replied to The Paper that after the incident, the company immediately lodged solemn representations with Sunac, and immediately reported to the local public security organ, and quickly took legal measures to complete the remaining 10% stake in Tazihu ​​Real Estate and the Grand View of the Park. The remaining unsold construction in progress of the project is sealed.

"At the same time, the company has reported the situation to the relevant government departments in Jiang'an District many times, and negotiated solutions for the delivery of the Park Grand View project and the realization of the interests of the investors in the trust plan. At present, the funds are in the government-supervised account, and our company will also be under the overall coordination of the government. To protect the rights and interests of the client to a certain extent.”

　　Sunac Group responded to The Paper, saying, "In order to better protect people's livelihood and ensure delivery, Sunac Wuhan 1890 and Sunac Park Grand View projects have been included in Wuhan's key supervision and delivery projects, and the project funds have been strictly regulated by the government. Management is required. On the basis of communication and negotiation, the company and Zhongrong have made commitments to the relevant government special classes to go all out to ensure delivery.”

　　According to the official website of Zhongrong Trust, the Zhongrong-Fengteng No. 83 Collective Fund Trust Plan was established in March 2021.

　　On June 10, Zhejiang Jihua Group Co., Ltd. (Jihua Group, 603980.SH) issued an announcement, mentioning the specific situation of the overdue trust products held by the company: According to the Zhongrong Trust issued on April 26, 2022, The "Zhongrong-Fengteng No. 83 Collective Fund Trust Plan Temporary Management Report" shows that in the second quarter of 2022, the sales receipts of the Wuhan Tazihu ​​Real Estate Project will be used to pay the trustee on a quarterly basis after meeting the needs of project development and construction. A certain amount of investment principal and investment income, while creditors, mortgagors and related parties will pay the trustee all remaining investment principal and remaining investment income before March 31, 2023.

"Based on the above-mentioned management report, combined with the comprehensive analysis of the payment collection after the period, the mortgage of creditor's rights, etc., the company believes that the above-mentioned payment is expected to be recovered, so no provision for impairment is made."

　　The announcement shows that the underlying assets of the Zhongrong-Fengteng No. 83 Collective Fund Trust Plan are the development of the K1 and K2 plots in Yaojialing Village, Wuchang District, Wuhan City, and the actual counterparty is Sunac Real Estate Group Co., Ltd.

The investment amount of the project is 30 million, the investment period is from April 30, 2021 to April 30, 2022, the interest rate is 7.2%, and it will be in the extension stage in June 2022.

After communication between Zhongrong Trust and Sunac Group, the project was postponed until March 31, 2023, and the interest rate was changed to 7.5%.

　　The announcement mentioned that the project has started to sell since March 2021 after obtaining the pre-sale certificate. As of June 2022, the sale rate is 66%, the average sales price is 23,000 yuan, and the average price of surrounding sales units is 22,000 yuan.

The above-mentioned trust uses the land of the K3 plot of Wuhan Tazihu ​​and some commercial office buildings of Rongke Tiancheng as collateral. After the overdue period, some land plots in Tianjin and Dalian are newly mortgaged, and the comprehensive mortgage rate is below 50%.

Sunac Real Estate Group Co., Ltd. provides a joint and several liability guarantee for Huichang Real Estate's performance gambling compensation for the trust plan and the obligation to purchase equity income rights.

　　According to industry insiders, this incident occurred on the premise of guaranteeing the handover of the building. "Currently, the funds are under the government's supervision account, and the sales receipts should be used to redeem."

　　In this regard, some investors also posted on social platforms that the aforementioned Sunac real estate project "broken the hearts of investors".

　　"In fact, this incident has little to do with the trust industry as a whole. The housing market is sluggish, trusts are implicated, and financial institutions have a hard time. The main reason is that real estate developers are too short of money." An industry observer said.

　　Founded in 1987, Zhongrong Trust was formerly known as Harbin International Trust and Investment Company. In 2010, Jingwei Textile Machinery became the company's largest shareholder. Zhongrong Trust's subsidiaries include Zhongrong International, Zhongrong Dingxin, and Zhongrong Fund.